During this year’s World Economic Forum meeting, which was held in Davos, Switzerland, Richard Liu Qiangdong confirmed the intention of JD.com to take its logistics business public. Richard Liu also confirmed to CNBC that the company is planning for a dual listing of its subsidiaries. Though he did not give a confirmation, Liu hinted at the possibility of the dual listing taking place in either the Chinese mainland or Hong Kong. Richard Liu Qiangdong is the Chief Executive Officer and Chairman of JD.com, one of the leading Chinese Online retailers.
According to Richard Liu Qiangdong, the company is not yet decided on which country it should list. But since JD’s parent company is listed on the Nasdaq, it is apparent that the dual listing will take place in mainland China or Hong Kong. Dual listing happens when a company places its shares on more than one stock exchange markets. The idea of dual listing enables investors to become more flexible. The stocks also become more liquid.
Already, JD.com has embarked on a fundraising round at its logistics business, with the aim of raising a total of $2 billion. Sequoia Capital China and Hillhouse Capital Group are expected to be the leading investors in the round. Although it is not clear when the initial public offer will take place, there is a possibility that Richard Liu will make the public offer in an overseas market.
JD.com subsidiaries include Jingdong Logistics Group Corporation, Jingdong Technology Group Corporation, and JD.com International Ltd, Hong Kong. Richard Liu founded the company in 2004. Currently, the company deals in direct online sales. It offers a wide variety of products including home appliances, general merchandise products, and electronics among others. JD.com sources its products from manufacturers and distributors across the world and sells them through its online platform.
Additionally, JD.com has opened its online platform to third-party sellers, who would wish to popularize their products in the Chinese market. Through a single class of services, Jingdong has improved and accelerated the delivery of its services through the internet. The company has also developed an online payment service to supplement the in-person payment option. Currently, JD.com has more than 210 warehouses with a floor area of about four million square meters in 70 cities across China.
Learn more about Liu : https://jdcorporateblog.com/about-richard-liu-jd-com-founder/